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Some members of the tax profession have argued that the Australian Taxation Office – by introducing automation, standard business reporting and other efficiencies – has stepped ‘over the line’ and is ‘taking’ processing and compliance work away from accountants and tax advisers.

I suggest that the ATO isn’t reducing the traditional work of accountants. Technology and technological change is. It’s essential for practitioners to accept this fact and move forward.

The profession’s reaction is, of course, similar to that of other professions and industries that are seeing their traditional models disrupted by technological change. Examples include the taxi, transport and accommodation sectors, to name but three.

With change comes uncertainty and, the greater the rate of change, the greater the concern from those operating under traditional business models. That said, it can be equally held that change brings opportunity and provides a platform (often said to b…

Just as your role today has changed markedly from what it was ten years ago, the tax professional of the future undoubtedly will be even more different. And preparing for this eventuality is no longer something that SME firms can put off.

Simply being a subject matter expert may not be enough in the practice and professional landscape of the increasingly-near future. The successful practitioner will be someone who can navigate and capitalise on the ever-changing technology landscape to benefit their clients and practice.Alongside sessions that will deliver strong tax technical content, the program of this year’s SME Symposium has expanded to look at how the tax practice of the future will operate.

Opening with a look at the role of a tax professional and asking if a new model is needed, Michael Cox (PwC) will then dive into how practitioners can navigate the new digital landscape they fi…

Is it just me or are there others out there who find the debate about lowering the corporate tax rate to 27.5% (ultimately to 25%) somewhat perverse in view of the fact that the top marginal tax rate is sitting at almost 50%?

Let’s look at the tax effect on the last $200,000 of taxable income of each of three fictitious taxpayers:

News Today Pty Ltd – the owner of an outer-Melbourne newsagencyBob Build – a respected architectAmy Land – a real estate investor.
News Today derives taxable income of $200,000. Assuming it is accepted that it carries on a business (1) and its turnover is less than $10m, it qualifies for the reduced corporate tax rate of 27.5%. This would give rise to tax of $55,000.

Bob Build earns $380,000 in 2016-17 in taxable income and will consequently pay tax on the top $200,000 of $94,000 (inclusive of the Medicare levy).

Amy Land purchased real estate in Sydney’s inner west for $1m in May 2014 and sells it in August 2016 for $1.2m. Tax …